Regulation · State guide
Texas annuity rules
Top 5-year MYGA
6.30%
B++ or better, yield to surrender
- FIA S&P cap
- 17.00%
- As of
- Oct 27
What Texas law says
Free-look period
If the annuity you bought replaced an existing policy or contract, Texas gives you at least 30 days after delivery to return it and receive an unconditional full refund of premiums paid.
Tex. Ins. Code § 1114.053(e), Texas Insurance Code § 1114.053 — duties of replacing insurers that use agents, right-to-return noticeVerified 2026-08-25
What your agent owes you
An agent must act in your best interest when recommending an annuity, and the insurer must supervise those recommendations.
Tex. Ins. Code § 1115.001, Texas Insurance Code ch. 1115 — Suitability of Certain Annuity TransactionsVerified 2026-08-25
How Texas taxes annuity income
Texas levies no individual income tax, so annuity income is not taxed at the state level.
Tex. Const. art. VIII, § 24-a, Texas Constitution art. VIII — Individual Income Tax ProhibitedVerified 2026-08-25
Who regulates annuities in Texas
Fixed annuities are insurance products, so they are overseen by the state insurance department rather than by the SEC. The department licenses the carriers and the producers who sell them, and it takes consumer complaints.
The Texas guaranty association
Every state has a life and health insurance guaranty association that steps in when a member insurer fails. Coverage terms are set by state law and differ by state and by product. Contact the association directly for what applies to a specific contract.
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This page is educational and is not legal, tax, or insurance advice. State rules change. Verify anything here with the Texas insurance department before acting.
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